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The Dairyman NOVEMBER 2009 7
NEWS
OVER the past weeks and months,
European dairy farmers have staged
protests over the crisis caused by the
dramatic slump in milk prices. Closer to
home there are farmers calling for food
strikes here in New Zealand.
Lachlan McKenzie, Federated Farmers
dairy chairperson, said the cost of compli-
ance in New Zealand is making farming
unprofitable and resulting in farms going
into receivership.
"The return to farmers has to increase."
The European Union has been trying for
years to wean farmers off subsidies to face
the world markets on their own but recently
gave in to pressure and agreed to give the
dairy sector an extra €280 million
(NZD$555 million) emergency aid package.
Romuald Schaber, the president of the
European Milk Board farmers' group and
leader of the dairy protest movement said
the move was a victory and that their fight
was bearing fruit for their milk farmers.
"At this time we are all fighting for sur-
vival. We need higher milk prices."
Gerd Sonnleitner, head of German farm
federation Deutscher Bauernverband said
they would have liked a billion.
"When it comes to agriculture, they talk
about financial discipline -- that is an
immoral policy."
Milk farmers' groups said world prices
had sunk so low that they have to sell milk at
half their production costs, leaving more and
more farmers unable to pay their bills.
The crisis has driven many EU farmers
into a "milk strike," with thousands refusing
to deliver milk to the processors.
Mr Schaber said up to half the milk farm-
ers in some areas were refusing to deliver
their milk and predicted shortages could hit
supermarkets.
"We are looking at a real catastrophe.
Nobody can produce milk at these prices,"
he said.
Protesting farmers have torched hay bales
and tyres in the streets of Brussels,
Luxembourg and Paris and sprayed truck-
loads of milk onto pasture.
European Union agricultural ministers
met in Luxembourg but had to be taken to an
alternative venue as thousands of dairy
farmers protested, burning hay and tyres and
throwing fire crackers, eggs and buckets of
milk at riot police outside where the meeting
was to have taken place.
Farmers later welcomed the announce-
ment of special aid, especially since it also
included rules that could limit milk produc-
tion at a national level to push up prices.
Despite the cash injection many EU farm-
ers are still demanding protective measures
to keep them insulated from fluctuating
world food prices, policy that EU lawmakers
are trying to move away from.
Padraig Walshe, the head of the European
farm federation COPA said they have found
money to bail out banks and also to bail out
the automobile industry.
"Surely the agricultural industry and the
food industry across Europe is every bit as
important."
Mr McKenzie said the world will have
nine billion people to feed by 2050 and food
will go up in price sooner rather than later.
"Food production needs to have better
recognition than it gets at the moment -- I
wish them well in getting higher prices at
the farm gate."
rachel.mcnaughton@xtra.co.nz
Food strikes could happen in New Zealand
By Rachel
McNaughton
Chief reporter
As EU farmers stage protests, Federated Farmers says milk prices must increase to avoid a similar crisis here.
"
www.pioneer.co.nz 0800 PIONEER 0800 746 633